The past several years the EDA has routinely received a transfer from the General Fund in order to fund operations, façade loans and the current downtown improvement project. In essence this transfer from the General Fund comes from a portion of the city's tax levy. The creation of an EDA special benefit levy should be considered a budget neutral change, as the city's general levy will no longer include the transfer to the EDA.  

In 1995, the Shakopee Housing and Redevelopment Authority (HRA) transferred its authority to the Shakopee EDA via Resolution No. 4206. This action allows the EDA to levy a separate tax or "Special Benefit Levy", which is not part of the city's general property tax levy. This EDA special benefit levy is subject to a limit of 0.0185 percent of the city's estimated market value. The EDA levy cap for 2018 is estimated to be $768,500. 

The advantage of the EDA special benefit levy is that the levy is applied to the market value of all taxable properties within the city including properties that are currently part of a tax abatement or TIF plan. The EDA levy is also identified on property tax statements as a separate local tax outside of the city's general property tax. 

Staff is recommending an EDA special benefit levy of $350,000 for 2018. A home valued at $229,100 for taxes payable 2017 would pay approximately $20 towards this EDA levy. A commercial property valued at approximately $1.0 million would pay approximately $93.

State Statutes require the consent of the City Council, prior to the tax levy becoming effective.  The EDA approved the levy and budget at their December 5, 2017 commission meeting.